Individuals A and B carry on business through a partnership. A and B are both active in the business and share profits equally after deducting partner salaries. In the current year the partnership paid salaries of $60,000 to A and $80,000 to B. The partnership reported net income $150,000 after partner salaries. The net income includes a gain of $24,000 on the sale of non-depreciable capital property, $12,000 of eligible dividends, and a deduction of $3,000 for charitable donations. Determine A's share of the partnership net income for tax purposes.

FINANCIAL ACCOUNTING
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ISBN:9781259964947
Author:Libby
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Chapter1: Financial Statements And Business Decisions
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Individuals A and B carry on business through a partnership. A and B are both active in the business
and share profits equally after deducting partner salaries. In the current year the partnership paid
salaries of $60,000 to A and $80,000 to B. The partnership reported net income $150,000 after
partner salaries. The net income includes a gain of $24,000 on the sale of non-depreciable capital
property, $12,000 of eligible dividends, and a deduction of $3,000 for charitable donations.
Determine A's share of the partnership net income for tax purposes.
Transcribed Image Text:Individuals A and B carry on business through a partnership. A and B are both active in the business and share profits equally after deducting partner salaries. In the current year the partnership paid salaries of $60,000 to A and $80,000 to B. The partnership reported net income $150,000 after partner salaries. The net income includes a gain of $24,000 on the sale of non-depreciable capital property, $12,000 of eligible dividends, and a deduction of $3,000 for charitable donations. Determine A's share of the partnership net income for tax purposes.
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